EuroChem makes binding offer for Borealis' nitrogen business
Borealis operates fertilizer production plants at the heart of important crop-producing regions in Austria and France. With more than 50 distribution points across Europe and around 4 million t of products (including c.0.8 million t of technical nitrogen solutions and c.0.15 million t of melamine) supplied annually in Western, Central and South East Europe via the Borealis L.A.T distribution network, Borealis is one of Europe’s leading fertilizer producers.
Borealis is also a market leader in melamine, with its operations in Austria and Germany serving the essential raw material primarily to the woodworking industry. Melamine and technical nitrogen solutions represent important new business lines for EuroChem to expand its nitrogen-based product portfolio in Europe.
Feeding the Borealis distribution network in France and Central and Eastern Europe, mainly along the Danube River, are a total of five production facilities: three in France, and another in each of Germany and Austria. In 2020, the business posted sales of 3.9 million metric t, with revenues of €908 million.
The transaction must clear customary consultation procedures with Borealis’ employee representative bodies and usual regulatory approvals. It is valued at €455 million (enterprise value) and subject to certain closing conditions, with closing foreseen in the second half of 2022.
Feb. 11, 2022